on January $2$ of the current year, South Co$.$ issued bonds payable with a face value of $$540,000$ at a discount.

The bonds are due in $12$ years and interest is payable semiannually every June $30$ and December $31.$

On June $30,$ and on December $31,$ South made the semiannual interest payments due and recorded interest

expense and amortization of bond discount.

For each item numbered $1$ through $7,$ select and place the correct response into the partially$-$completed amor$-$

tization table below.

Annual Interest Rates:

Stated

$(4)$

Effective

$(5)$

Selections may be made from the list below. Any choice may be used once, more than once, or not at all.